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Amendment in Rule 114B for compulsory quoting of pan in case of cash deposit exceeding Rs. 50000 in a single day or aggregating to more then Rs.  2.5 lakh during the period from 09.11.2016 till 30.12.2016.

Amendment in Rule 114E for filing AIR report as required under section 285BA of Income Tax Act, 1961 wrt reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs. 12.5 lakhs or Rs. 2.5 lakh or more in one or more account of a person during 09.11.2016 till 30.12.2016.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION No. 104/2016-Income Tax

New Delhi, the 15th November, 2016

G.S.R 1068(E).- In exercise of the powers conferred by section 285BA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income–tax (30th Amendment) Rules, 2016.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 114B, in the Table, for serial number 10 and entries relating thereto the following serial number and entries shall be substituted, namely:-

Sl. No. Nature of transaction Value of transaction
(1) (2) (3)
“10.

Deposit with,-

(i) a banking company or a co- operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in
section 51 of that Act);

(ii) Post Office.

Cash deposits,-

(i) exceeding fifty thousand rupees during any one day; or

(ii) aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.”.

3. In the said rules, in rule 114E, ̶

(i) in sub-rule (2), in the Table, after serial number 11 and entries relating thereto the following serial number and entries shall be inserted, namely:-

Sl. No. Nature and value of transaction Class of person (reporting person)
(1) (2) (3)
“12.

Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to ̶

(i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or

(ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person.

(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).”;

(ii) in sub-rule (5), the following proviso shall be inserted, namely:-

“Provided the statement of financial transaction in respect of the transactions listed at serial number (12) in the Table under sub-rule (2), shall be furnished on or before the 31st day of January, 2017.”.

[Notification No. 104/2016]

[F.No.370142/32/2016-TPL]

(Dr. T.S. Mapwal)

Under Secretary to the Government of India

Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification S.O.3399(E), dated 07th November, 2016.

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45 Comments

  1. Ankit Jain says:

    R/s,

    I am the vendor of amul, I sold milk purchased from amul directly to various shops, and received cash from and deposited the same in bank for making payment to amul, same procedure continued during demonitisation and department is adding whole deposit of SBN to undisclosed income, even the cash deposit is less than total purchase from amul,

    please help me out if there is any remidy for the same

  2. arunsingh rawat says:

    sir I selling our house and the other party wanna pay money by bank this amount is 32 lakh so in this condition we have to pay any tax to the bank or gov ? pls reply

  3. R.K.Sharma says:

    Between 9.11.16 to 30.12.16 Rs.2.25 Lakh have been transferred to my a/c on account of maturity valuer of FD. Whether this amount has to be reported in ITR-1. Some more money transferred to my account as a salary etc. Is this amount has to be treated as aggregate amount deposited in a Bank

  4. Ashish says:

    I received income tax mail for online submission of cash receipts from 9 Nov to 30 Dec yesterday for the cash deposition,though I have deposited cash only in new currencies worth 1 crore in the given period?plus confirm that are they sending notices on any criteria or randomly? If criteria please specify.thanks in advance.

  5. Harish says:

    Sir,
    When we deposit cash for income tax directly and advance tax . For example for 2015-16 an assese pays 75000 as tax in 500 and 1000 again advance tax of 100000 in 500 and 1000 by cash directly to income tax department through bank. The deposit to income tax department is also during the same demonetisation period. Still can he deposit 2.5 lakh into his account.

  6. Amol says:

    Sir,
    What if someone transfer money through internet banking to my account and it exceeds the limit of 2.5 lakh in SB account..will it count as an over all transactions limit.? or it only counts for self cash deposits..?

  7. Amol says:

    Sir,
    What if someone transfer money through internet banking to my account and it exceeds the limit of 2.5 lakh in SB account..will it count as an over all transactions limit.? or it only counts for self cash deposits..? –

  8. Mohammed Kazim says:

    Sir,
    What if someone transfer money through internet banking to my account and it exceeds the limit of 2.5 lakh in SB account..will it count as an over all transactions limit.? or it only counts for self cash deposits..?

  9. RaviMohan says:

    Person called Individual or HUF if their deposit into savings bank a/c during 9th Nov 2016 to 30th Dec 2016 will be exceeded Rs.50000 in single day or aggregate deposit exceeded Rs.250000 during these period, the same would be notified by the IT Departement.

    Secondly, in case of having business entity by a person + Body Corporate, such aggregate limit of deposit into their current account should not exceed Rs.12,50,000/- during the period.

  10. Bharat says:

    If one person deposits 200000 in one day and
    Other person deposits 49000 five times then name
    First person be reported and second person is free
    ?? Deposits are in the same periods. 9th nov to 30
    Dec…? There is clear understanding that denominations
    Specified are removed from currency that is 500 and
    1000 rupees.
    What is the logic ????

  11. sunil jadhav says:

    I already 2.5 lac old notes cash deposit in current account after 8th Nov 2016 . can i deposit again old notes this current account? it means can i do second transaction of old notes cash deposit in my current account? please reply

  12. Natendra Modi says:

    These all steps hit the common people, why they couldn’t catch big shots directly as they must have converted their black in other securities already.

  13. prabha says:

    I and my daughter, we both have deposited Rs. 70,000/- and Rs. 60,000/- out of the Household savings in the Bank in our account.
    A rule brought out after the Government giving big Newspaper advertisements, wherein this rule was no where reflected, how far this is O.K.?
    On top of this, depositing money again and again to the tune of Rs. 2,50,000/- may be in 5/6/10 installments will amount to depositing the money belonging to others also. This rule is not O.K.

  14. DINESH BANSAL says:

    thanks for updating us,.bUT I Want to know that if the the old lady saved the money about Rs 3 lakh and want to deposit in the saving account without pan card or pan card is compulsary.

  15. Shivani says:

    Thanx for the giving information. But I want to know that if I have saved around 1.40 lacs and want to deposit in my savings account then could I deposit whole amount or in part I.e.below 50000.

  16. Jayadev says:

    Why notifications already all banks are integrated to server of income tax and accounting for cash transactions is already there in each pan card wise

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